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Caution: Internet Legal Forms Can Cause More Problems Than They Solve for Your Small Business

The development of the internet has given us access to a wealth of information and assistance—but there is a downside to the World Wide Web. For example, people and businesses can now go online and access any number of legal forms, contracts, and agreements for their own uses. Websites like Legal Zoom and DocStoc allow users to find the basic legal forms they are looking for, fill in a few blanks, and hit print—all for a fraction of the cost of hiring a business attorney.

Although it’s fast and inexpensive, using online legal forms comes with a host of issues—and we’re not saying that just because we’re lawyers. Here’s a closer look at what you should know before you download a contract and start filling in blanks:

Forms aren’t specific to your legal needs. Your contracts and agreements should be specific to your business and your needs—no two contracts should be the same. If your contract isn’t specific to your legal needs, you might find yourself in trouble in the event of a contract dispute. Or there may be huge loopholes that you didn’t see. In a worst-case scenario, the contract might not even be valid or the contract might be binding in a way that you absolutely didn’t intend.

No one is there to help you interpret the forms. Technical legal talk can be hard to understand and even harder to write. All too often, people who download the forms don’t closely read them—or don’t completely understand them. Again, if your contract or form doesn’t say exactly what you need it to say, it is useless to you.

You don’t get general legal advice. A business attorney isn’t just there to write up your legal forms; he is also there to let you know what forms you should acquire and why. In addition, they can analyze your situation and make certain that you have a contract that gives you the legal protection that you need. Having a long-term relationship with one business attorney can also better ensure that you do not fall victim to common business legal issues.

While there may be limited situations in which an online legal form could be appropriate and economical to use, they are more often a recipe for ongoing legal issues. They could prevent you from taking others to court—or could land you in court yourself. Either way, a low-cost, online legal form could cost you much more in the long run.